Delinquency rates for commercial and multifamily
mortgages loans improved in the second quarter of 2013 across all of the major
groups that invest in them. The Mortgage
Bankers Association's (MBA) Commercial/Multifamily Delinquency Report released
on Wednesday showed a particularly
strong decline in the mortgage rate for loans held in commercial
mortgage-backed securities (CMBS), calling it the largest on record.
The 30+ day delinquency rate for CMBS portfolios
dropped by 74 basis points during the quarter, from 8.55 percent to 7.81
percent. The rate had hit its post-crash
peak in the second quarter of 2011 at 9.02 percent and was at 8.97 percent at
the end of the second quarter of 2012.
The 90+ day delinquency rate for loans
held by banks and thrifts declined from 2.42 percent at the end of the first
quarter to 2.16 percent in the second. The rate at the end of the same quarter a
year earlier was 3.12 percent.
Loans held in life insurance company
portfolios had remained low throughout the recession and post-recession period,
topping out at a 60+ day rate under .3 percent.
At the end of the second quarter the rate was at 0.08 percent, down one
basis point from the first quarter.
Multifamily loans held by Fannie Mae had
reached a peak 60+ day delinquency rate of .80 percent in the second quarter of
2010 percent and Freddie Mac's 60+ day rate peaked at 0.36 percent in the first
quarter of 2011. In the most recent quarter the rate for Fannie Mae's loans was
.28 percent, 11 basis points below that of the first quarter. The rate for Freddie Mac's multifamily
portfolio was down .07 point to 0.9 percent.
Commercial and multifamily loan performance continued to improve during
the second quarter, with delinquency rates falling for every major investor
group," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate
Research. "The quarterly decline in the delinquency rate of loans held in
commercial mortgage-backed securities (CMBS) was the largest on record, and
delinquency rates for loans held by life companies and the GSEs remain low and
fell lower during the quarter."
The five large investor groups included in MBA's delinquency
analysis together hold more than 80 percent of outstanding
commercial/multifamily mortgage debt.